Briefing note
Registering the company is the easy part.
Any platform will do the registration for a few hundred dollars. None of them covers the Indian side in its published scope, and that is where the penalties are.
Before the first rupee leaves India
Three things have to happen in order, and all of them sit on the Indian side.
- STEP 01
- What to do
- Send the money through an Authorised Dealer bank
- Why
An overseas investment has to leave India through an Authorised Dealer bank, from the first rupee.
Paying a formation service fee by card is not itself an overseas investment. Money that buys shares in your company is, and generally needs to go through your AD bank.
- Where
- At an Authorised Dealer bank in India. Not on a personal card.
- STEP 02
- What to do
- Decide LRS or ODI before the remittance
- Why
The Liberalised Remittance Scheme and Overseas Direct Investment are two different routes for money going abroad. The choice shapes what has to be reported afterwards.
Made in advance, it is a decision. Made later, the position has to be established retrospectively.
- Where
- Before any money moves, as part of the structure decision.
- STEP 03
- What to do
- File Form FC and obtain the UIN on time
- Why
Form FC is the RBI filing that reports the overseas investment. Once it is filed, a Unique Identification Number is issued for the overseas entity.
An Annual Performance Report, certified by a Chartered Accountant, is then due every year by 31 December for as long as the entity is held.
- Where
- With the RBI.
If you have already incorporated
Most people reach this note after the company exists. If your formation fee was paid on a personal card and nobody filed Form FC, the order above has already been missed, and the question becomes what was left undone. The exposure check establishes that in five questions, with no documents and no sign-up.
Where Daellio fits
Not yet incorporated
Setting up a company abroad
For people about to incorporate abroad.
- Structure call covering whether to incorporate at all
- routing correct from the first rupee
- US entity plus registered agent, address, EIN and operating agreement
- and filed on time
- India entity if needed
- Bank account and Stripe setup
- , ,
- Founder IP assignment and core contracts
- Document vault
- Compliance calendar
- First-year handholding
Daellio works with a limited number of companies at a time. Request access.